KUALA LUMPUR (Sept 12): Tek Seng Holdings Bhd says its planned diversification into the solar energy business could have been the cause of its recent share price and volume surge.
In a reply to Bursa Malaysia unusual market activity (UMA) query on Tek Seng's share trade dynamics, Tek Seng said it was unaware of any other corporate development, which could have led to unusual surge in its share price and volume.
"We would like to draw your attention to the announcement made on 11 September 2014 in respect of the Memorandum of Understanding between Tek Seng Holdings Berhad and Solartech Energy Corp," polyvinyl chloride product manufacturer Tek Seng said.
The MOU between Tek Seng and Solartech was for the purpose of a strategic alliance. Solartech intends to invest RM100 million into Tek Seng's 86.1%-owned subsidiary, TS Solartech Sdn Bhd.
Bursa had issued the UMA query to Tek Seng yesterday.